TIDMOOA
Octopus AIM VCT PLC
Half-yearly Results
13 October 2015
Octopus AIM VCT plc, managed by Octopus Investments Limited, today
announces the half-yearly results for the six months ended 31 August
2015.
These results were approved by the Board of Directors on 13 October
2015.
Octopus AIM VCT plc is a venture capital trust which aims to provide
shareholders with attractive tax-free dividends and long-term capital
growth by investing in a diverse portfolio of predominately AIM-quoted
companies. The Company's investments are managed by Octopus Investments
Limited.
The Company's Objective
The objective of the Company is to invest in a broad range of
predominantly AIM-quoted companies in order to generate income and
long-term capital growth. Investments are made selectively across a
range of sectors in companies that have the potential to grow and
enhance their value.
The Company offers investors exposure to the AIM market through a mature
portfolio which takes a long term view. This enables investors to
benefit from the tax advantages of investing in a VCT.
The investment portfolio
The Company's funds are managed by Octopus Investments Limited within a
VCT-qualifying structure and the objective is to invest in a diversified
portfolio of smaller companies principally listed on AIM. Investments
are selected for their growth potential, dividend prospects and quality
management teams which have a clear business plan to create growth. VCT
regulation prevents material investment into asset backed companies,
such as resource stocks and as a result, promotes investment into
knowledge intensive and earlier stage companies.
Although the investment philosophy takes a long term view, the Company
operates a buy back policy so that shareholders can exit their
investment if they wish to. Shares are repurchased at a 5% discount to
NAV and cancelled.
Tax benefits
Shareholders who buy shares in a new offer by the Company receive up to
30% up-front income tax relief on investments up to GBP200,000 per tax
year providing the shares are held for five years. Dividends are tax
free irrespective of whether they purchased their shares in the
secondary market or through a new share offer. It is your Board's
intention to continue to pay a minimum dividend of 2.5p each half year.
At the year-end our intention is to adjust the final dividend so that on
an annual basis, and based on the year-end share price, shareholders
receive either 5p per annum or a 5% yield, whichever is greater at the
time. This will enable dividends to progress with a rising NAV, whilst
maintaining the minimum historic level.
Shareholders can sell shares through the Company-operated buy back
policy and all disposals are free of Capital Gains Tax.
The Manager
The Octopus Investments Limited Smaller Companies Team is one of the
most experienced AIM fund managers in the market. Octopus is a fast
growing fund management company and currently manages GBP5 billion in
funds making it the UK's biggest VCT provider.
Financial Headlines
105.6p Net Asset Value at 31 August 2015
2.5p *Interim dividend proposed for half year to 31 August
2015.
*An interim dividend of 2.5p will be paid on 14 January 2016 to those
shareholders on the register on 18 December 2015. This is eligible for
DRIS.
Financial Summary
Six months to 31 Six months to 31 Year to
August 2015 August 2014 28 February 2015
Net assets
(GBP'000s) 77,363 64,726 72,612
Net profit /(loss)
after tax
(GBP'000s) 1,895 (5,515) (5,226)
Net asset value per
share ("NAV") 105.6p 112.5p 110.2p
Dividends paid in
the period 6.8p 3.0p 5.5p
Total return* 2.0% (7.7)% (7.6)%
* The total return is calculated as the (movement in NAV + Dividends
paid in the period) divided by the NAV at the beginning of period
DISCRETE ANNUAL PERFORMANCE TO 31 AUGUST 2015
Year to 31 Year to 31 Year to 31 Year to 31
August August August August Year to 31
2015 2014 2013 2012 August 2011
Octopus AIM
VCT NAV
Performance
- Total
Return 2.1% 13.0% 25.9% 6.0% 12.5%
FTSE AIM
Total
Return (4.6)% 4.7% 11.4% (11.0)% 12.7%
FTSE All
Share Total
Return (2.3)% 10.3% 18.9% 10.2% 7.3%
Octopus AIM
VCT Share
Performance
- Total
Return 0.7% 13.9% 36.1% 3.0% 25.1%
Sources: Octopus, Lipper. VCT performance shown is a simple return
comparison between the NAV at the beginning of the period and the NAV,
plus any dividends paid out, at the end of the period. VCT share price
performance shown includes reinvested dividends. NAV stated after the
deduction of fees.
Chairman's Statement
INTRODUCTION
The temporary euphoria of a majority single party government in May has
since been followed by worries over the slowdown in Chinese economic
growth, the continuing hiatus in the Eurozone and the political
difficulties caused by the European immigrant crisis as well as concerns
about the timing of interest rate rises. Not surprisingly larger
companies' share prices, the constituents of the FTSE 100 index, have
been volatile. Smaller companies have been much more resilient, but it
would be wrong to suggest that they can avoid the mood swings entirely,
even though their exposure to China's difficulties, for example, are
peripheral rather than direct.
In the six months since the year end to 31 August smaller companies have
shown considerable resilience in contrast to their larger brethren and
that has provided a reasonable background against which companies have
continued to raise new capital. Valuations have been more realistic
than they were a year ago and your company has invested a total of GBP4m
in VCT qualifying holdings in the first half of the year. Also in the
period the proceeds from the take-over of Advanced Computer Software
were received and your company has paid a total dividend of 6.8p per
share, which comprised a special dividend of 4p and an ordinary dividend,
in line with the board's policy of 2.8p per share.
PERFORMANCE
It is hardly surprising, in the context of the jolt to the market in the
later summer, that the indices for larger companies were lower at the
end of August compared to February. The total return on the FTSE All
Share Index was -6.2% in the six month period and the FTSE 100 Index was
down almost 8%. Smaller companies however, have weathered the storm in
rather better style. The total return on the FTSE SmallCap (excluding
investment companies) Index was 6.4% and the FTSE AIM All Share Index
was up 3.5%. The Net Asset Value (NAV) was 105.6p at the end of August,
but that is after paying the 6.8p dividend. Adding this back to the
period end NAV gives a value of 112.4p, compared to the NAV of 110.2p at
the end of February, a rise of 2%. Amongst portfolio constituents,
there have been good performance contributions from the more mature and
established holdings such as Brooks Macdonald, Staffline, Gooch &
Housego, Adept Telecoms, GB Group, Mattioli Woods, Iomart and Craneware.
The share price of Chime Communications has benefitted from the
recommended bid for the company. However, these have been
counterbalanced by poor share price performance from some of the earlier
stage companies, where the nervousness of the market has impacted share
prices, particularly those that are still potentially needing further
finance to get them to profitability. Proxama, Sphere Medical, Nektan,
Wandisco and Oxford Pharmascience all fell into this category and Mycelx
continued to perform badly against the background of a weak oil price.
Tasty, RWS, and Judges Scientific also performed badly in the six months
although all of these are profitable and dividend paying and have seen
their shares recover since the period end.
DIVIDEND
Your board has a policy of an annualised 5% yield target and the
ordinary 2.8p dividend referred to above was paid in line with this
policy. Your board would like to continue this policy and therefore has
declared an interim dividend of 2.5p per share. This will be paid to
shareholders, who are on the share register on 18 December 2015, on 14
January 2016.
INVESTMENT ACTIVITY
Your managers have invested GBP4m in qualifying investments in the six
months to the end of August. That comprises GBP1.1m into two existing
holdings, Learning Technologies and Nektan. The balance of almost GBP3m
has been invested into new holdings, Sphere Medical, Gear4Music, Oxford
Pharmascience and ReNeuron. Gear4Music is a leading UK online retailer
of musical instruments, both branded and its own brands. At present it
has one showroom in York and is opening another in London with the
proceeds from its float. The other three new holdings are all involved
in medical science in one form or another. Sphere Medical is developing
a novel bedside blood analyser product for use on patients in intensive
care. Oxford Pharmascience is redeveloping existing pain relief
medicines, such as aspirin and ibuprofen, to reduce side effects and
Reneuron is developing stem cell treatments. Much of this science is
inevitably long term in nature and of course will face many problems,
not least regulatory and financial, along the way, before being finally
accepted into practical use in health services around the world. However,
the companies have substantial cash resources and a good chance of
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successful progress and are very much what VCTs should be investing in.
There were three take-overs in the six months. The first, which was
mentioned in the report and accounts, was of Advanced Computer Software.
The proceeds of this transaction were received in March out of which a
special 4p dividend was paid in August and the balance was available for
investment. The second take-over was of the small holding in Enables IT,
for which shares in 1Spatial were accepted. As a result this VCT has a
small holding now in 1Spatial. Finally Synarbor, a delisted AIM company
and a small unlisted holding in the portfolio, was successfully sold by
its directors.
A number of new non-qualifying holdings have been established, which
include Clinigen and CityFibre Infrastructure Holdings, as well as
adding to existing holdings such as Ergomed and Ideagen. Your managers
are looking for opportunities to add to the non-qualifying portfolio in
order to put the cash raised under the offer to work while it is waiting
for new qualifying opportunities.
SHARE ISSUES AND BUY-BACKS
As the report and accounts mentioned, the share offer remained open at
that time, although it closed on 1 July. In the period since the
financial year end, your company raised GBP9m of additional capital, to
make a total of GBP18m raised under last year's prospectus.
In the six months to the end of August, your company bought back 311,574
shares and these have all been cancelled. There are no share held in
treasury.
In addition 323,669 new ordinary shares were issued in August to
shareholders who participate in the share reinvestment scheme.
VCT REGULATIONS
In the summer Budget, as shareholders may be aware, a number of changes
to VCT regulations were introduced, which will become effective when
Royal Assent is given to the Finance Bill. This is expected shortly. To
the extent that these proposals affect this VCT, your board is
discussing the potential consequences with your manager. Given the
established nature of the portfolio, any changes are unlikely to be
immediate. It is probable that over time the investment focus will be
refined and we will set out any detailed implications of this in the
next annual report once we have examined the new regulations.
RISKS AND UNCERTAINTIES
The principal risks and uncertainties are set out in Note 6 to this half
yearly report on page X.
OUTLOOK
The current economic headlines are dominated by a number of
well-documented international concerns, which do not really impact
directly on smaller UK companies although they do affect market
sentiment and therefore share prices. The most important factor for
companies in your portfolio is the growth in the UK economy and the
prospects for its continuation. In the wake of the recent results seen
during September, it is clear that many portfolio companies are trading
well, enjoying the benefits of the UK's growth and continuing to invest
and innovate. The exceptions to this relatively rosy view are those
companies facing export market and foreign exchange difficulties, as
well as any exposed to the resource sector although your managers would
argue that these issues are now reflected in the relevant share prices.
However, at the end of September the unaudited NAV had risen to 106.5p,
compared to 105.6p a month earlier. The market will continue to worry
about the effects of any interest rate rises. However, with inflation
still below the Bank of England's 2% target it does not look to be a
near prospect.
The pipeline of VCT qualifying investment opportunities has been a
little slower to recover from the seasonal summer lull than usual. This
is probably partly due to the volatile state of larger company share
prices but also not helped by the process of companies and advisers
adjusting to the new VCT legislation which was outlined in the summer
budget and will be finalised in the next month. Your company still has
relatively high levels of cash and has made two small follow on
investments into existing holdings since the end of the period and is
now starting to see more opportunities on the horizon. We expect the
number to rise for as long as the current economic confidence persists.
Michael Reeve
13 October 2015
Investment Portfolio
% equity
held by
Book cost Fair all
as at 31 Cumulative Value at % equity funds
August change in 31 August Movement held by managed
2015 fair value 2015 in year AIM VCT by
Investments Sector (GBP'000) (GBP'000) (GBP'000) ('GBP000) plc Octopus
Staffline Recruitment Plc Support Services 342 4,987 5,329 2,038 1.4% 11.2%
Construction &
Breedon Aggregates Limited Building 859 2,790 3,649 233 0.7% 1.1%
Brooks MacDonald Group Plc Finance 746 1,946 2,692 551 1.1% 7.5%
GB Group plc Support Services 714 1,877 2,591 691 1.0% 8.6%
Mattioli Woods Plc Finance 528 1,788 2,316 309 1.6% 2.4%
TLA Worldwide plc Media 807 1,483 2,290 555 3.0% 6.4%
Technology
Quixant plc Hardware 697 1,498 2,195 46 2.3% 6.4%
Idox Plc Software 353 1,570 1,923 24 1.3% 3.6%
Tasty Plc Leisure & Hotels 621 1,194 1,815 (238) 2.8% 5.2%
Vertu Motors Plc General Retailers 1,265 475 1,740 180 0.8% 5.9%
Telecommunication
Netcall plc Services 437 1,218 1,655 (481) 2.6% 4.5%
Pharmaceuticals &
Ergomed Plc Biotech 1,440 137 1,577 122 3.1% 10.7%
Brady plc Software 947 519 1,466 186 1.8% 3.1%
Learning Technologies Group (formerly In-Deed Online
Plc) Support Services 1,317 82 1,399 175 1.6% 2.7%
EKF Diagnostics Plc Health 931 301 1,232 (83) 1.3% 2.4%
Nektan plc (formerly Nektan Limited) Software 1,145 59 1,204 (316) 2.8% 16.4%
Cello Group Plc Media 895 231 1,126 36 1.4% 5.9%
Telecommunication
Adept Telecom Plc Services 600 514 1,114 497 1.9% 3.8%
Animalcare Group Plc Health 306 795 1,101 55 2.6% 6.8%
Escher Group Holdings plc Software 1,003 58 1,061 30 3.2% 5.5%
Pharmaceuticals &
Oxford Pharmascience Group plc Biotech 1,350 (304) 1,046 (304) 1.1% 3.5%
Electronic &
Gooch & Housego Plc Electrical 489 520 1,009 187 0.5% 10.9%
Bond International Plc Software 354 636 990 157 2.2% 3.3%
Pharmaceuticals &
Skyepharma plc Biotech 672 269 941 63 0.3% 0.6%
RWS Holdings Plc Support Services 367 489 856 (269) 0.3% 6.3%
Craneware Plc Software 183 672 855 145 0.5% 1.9%
Restore Plc Support Services 467 386 853 (141) 0.4% 10.3%
Telecommunication
CityFibre Infrastructure Holdings Plc Services 1,025 (234) 791 (234) 1.6% 3.6%
SQS Software Plc Software 291 476 767 15 0.4% 12.2%
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Electronic &
Judges Scientific Plc Electrical 314 447 761 (96) 0.8% 1.4%
Nasstar plc Software 480 264 744 (72) 2.6% 7.4%
Pharmaceuticals &
Clinigen Group plc Biotech 619 110 729 110 0.1% 3.0%
DP Poland Plc Leisure & Hotels 546 127 673 (209) 3.8% 6.4%
Cambridge Cognition Group plc Health 600 43 643 69 5.0% 17.8%
Fusionex International plc Software 282 351 633 (56) 0.4% 1.5%
Pharmaceuticals &
Sinclair Pharma Plc Biotech 765 (151) 614 48 0.4% 0.6%
Pharmaceuticals &
Midatech Pharma Plc Biotech 600 2 602 (54) 0.8% 3.6%
Omega Diagnostics Plc Health 464 99 563 38 3.5% 6.1%
Gear4Music Holdings plc Media 557 (4) 553 (4) 2.0% 5.1%
Ideagen plc Software 419 115 534 78 0.7% 5.6%
Sphere Medical Health 600 (113) 487 (113) 2.6% 4.4%
Mears Group Plc Support Services 139 348 487 (50) 0.1% 0.1%
Access Intelligence Plc Software 495 (56) 439 131 2.7% 5.3%
Engineering &
Plastics Capital Plc Machinery 400 20 420 (20) 1.1% 11.7%
Goals Soccer Centres Plc Leisure & Hotels 205 179 384 (84) 0.3% 2.3%
MyCelx Technologies plc Oil Services 1,470 (1,087) 383 (631) 5.3% 11.5%
Proxama plc Software 763 (382) 381 (168) 3.0% 12.1%
Iomart Group Plc Software 268 95 363 58 0.1% 7.2%
Pharmaceuticals &
ReNeuron Group Plc Biotech 324 16 340 16 0.2% 1.2%
Chime Communications Plc Media 194 132 326 87 0.1% 0.3%
Engineering &
Microsaic Systems Plc Machinery 325 - 325 (12) 1.2% 7.6%
Pharmaceuticals &
Futura Medical Plc Biotech 613 (291) 322 (48) 1.1% 5.2%
Vianet Group Plc Support Services 359 (83) 276 36 1.1% 4.7%
WANdisco Plc Software 241 (12) 229 (304) 0.5% 0.8%
Altitude Group Plc Media 600 (400) 200 (67) 3.9% 4.5%
Engineering &
Corac Plc Machinery 648 (462) 186 (27) 1.3% 6.4%
Lombard Medical Technologies Plc Health 408 (265) 143 (63) 0.4% 0.7%
Synarbor Plc Support Services 15 124 139 117 0.8% 0.8%
Tangent Communications Plc Support Services 578 (448) 130 (43) 2.1% 4.7%
Enteq Upstream Plc Oil Services 1,032 (908) 124 (26) 1.7% 3.8%
Hasgrove Plc Media 88 (9) 79 - 2.2% 13.0%
Dods Group Plc Media 203 (138) 65 10 0.2% 0.2%
Enables IT Group plc (1spatial) Software 300 (241) 59 (16) 0.1% 0.2%
Work Group Plc Support Services 943 (890) 53 6 4.1% 6.1%
Engineering &
Tanfield Group Plc Machinery 226 (174) 52 (10) 0.2% 0.6%
Rated People Limited Software 354 (322) 32 (322) 0.5% 1.5%
Clean Air Power Limited Industrial 485 (454) 31 (130) 2.0% 8.8%
Total investments 39,073 22,014 61,087 2,404
Money market funds 5,257
Total fixed asset investments and money market funds 66,344
Cash at bank 11,049
Debtors less creditors (30)
Total net assets 77,363
Responsibility Statement of the Directors in respect of the Half-Yearly
Report
We confirm that to the best of our knowledge:
-- the half-yearly financial statements have been prepared in accordance
with the statement "Interim Financial Reporting" issued by the Financial
Reporting Council;
-- the half-yearly report includes a fair review of the information required
by the Financial Conduct Authority's Disclosure and Transparency Rules,
being:
-- an indication of the important events that have occurred during the first
six months of the financial year and their impact on the condensed set of
financial statements;
-- a description of the principal risks and uncertainties for the remaining
six months of the year; and
-- a description of related party transactions that have taken place in the
first six months of the current financial year, that may have materially
affected the financial position or performance of the Company during that
period and any changes in the related party transactions described in the
last annual report that could do so.
On behalf of the Board
Michael Reeve
Chairman
13 October 2015
Income Statement
Six months to 31 August Six months to 31 August
2015 2014 Year to 28 February 2015
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised (loss) on disposal of fixed asset
investments - (33) (33) - (120) (120) - (298) (298)
Unrealised gain/(loss) on valuation of fixed asset
investment - 2,408 2,408 - (4,940) (4,940) - (4,005) (4,005)
Income 385 - 385 363 - 363 703 - 703
Investment management fees (173) (519) (692) (149) (447) (596) (302) (906) (1,208)
Other expenses (173) - (173) (222) - (222) (418) - (418)
Profit/(loss) on ordinary activities before tax 39 1,856 1,895 (8) (5,507) (5,515) (17) (5,209) (5,226)
Taxation on (loss)/profit on ordinary activities -- - - - - - - - -
Profit/(loss) on ordinary activities after tax 39 1,856 1,895 (8) (5,507) (5,515) (17) (5,209) (5,226)
Earnings per share - basic and diluted 0.1p 2.6p 2.7p - (9.6p) (9.6p) 0.0p (8.8p) (8.8p)
-- The 'Total' column of this statement is the profit and loss account of
the Company; the supplementary revenue return and capital return columns
have been prepared under guidance published by the Association of
Investment Companies.
-- All revenue and capital items in the above statement derive from
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continuing operations.
-- The accompanying notes are an integral part of the half-yearly report.
-- The Company has no recognised gains or losses other than those disclosed
in the income statement.
Reconciliation of Movements in Shareholders' Funds
Six months ended Six months ended Year to
31 August 2015 31 August 2014 29 February 2015
GBP'000 GBP'000 GBP'000
Shareholders' funds at
start of period 72,612 69,730 69,730
Profit/(loss) on
ordinary activities
after tax 1,895 (5,515) (5,226)
Shares purchased and
cancelled (328) (332) (771)
Issue of equity 8,143 2,573 13,194
Increase/(decrease) in
shares to be issued - - (1,008)
Dividends paid (4,959) (1,730) (3,307)
Shareholders' funds at
end of period 77,363 64,726 72,612
Balance Sheet
As at 31 August As at 31 August As at 28 February
2015 2014 2015
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset
investments* 61,087 56,925 57,711
Current
assets:
Money market
securities* 5,257 453 454
Debtors 63 64 203
Cash at bank 11,049 7,466 14,992
16,369 7,983 15,649
Creditors:
amounts
falling due
within one
year (93) (182) (748)
Net current
assets 16,276 7,801 14,901
Net assets 77,363 64,726 72,612
Called up
equity share
capital 733 575 656
Shares to be
issued - - 319
Share premium
account 17,675 4,742 13,951
Capital
redemption
reserve 12 5 9
Special
distributable
reserve 68,014 64,123 63,684
Capital
reserve
realised (31,461) (29,082) (29,810)
Capital
reserve
unrealised 22,016 24,019 23,468
Revenue
reserve 374 344 335
Total equity
shareholders'
funds 77,363 64,726 72,612
Net asset 105.6p 112.5p 110.2p
value per
share
*Held at fair value through profit & loss
The accompanying notes form an integral part of the financial
statements.
The statements were approved by the Directors and authorised for issue
on 13 October 2015 and are signed on their behalf by:
Michael Reeve
Chairman
Company No: 03477519
Cash Flow Statement
Six months to Six months to Year to
31 August 2015 31 August 2014 28 February 2015
GBP'000 GBP'000 GBP'000
Net cash outflow from
operating activities (995) (257) (298)
Financial investment :
Purchase of fixed asset
investments (6,014) (2,363) (5,291)
Disposal of fixed asset
investments 5,012 946 3,845
Management of cash
equivalent resources:
Purchase of current asset
investment (4,802) - (1)
Disposal of current asset
investment - - -
Net cash outflow from
investing activities (6,799) (1,674) (1)
Dividends paid (4,959) (1,730) (3,307)
Financing:
Shares to be issued - - (1,008)
Issue of equity 8,143 2,573 13,194
Shares re-purchased (328) (332) (771)
2,856 511 11,415
(Decrease)/increase in
cash at bank (3,943) (1,163) 6,363
Reconciliation of Net Cash Flow to Movement in Net
Funds
Six months to
Six months to 31 August
31 August 2015 2014 Year to 28 February 2015
GBP'000 GBP'000 GBP'000
(Decrease)/increase
in cash at bank (3,943) (1,163) 6,363
Increase in cash
equivalents 4,803 - 1
Opening net liquid
resources 15,446 9,082 9,082
Net cash resources
at end of period 16,306 7,919 15,446
Reconciliation of Profit before Taxation to Cash Flow
from Operating Activities
Six months to Six months to
31 August 2015 31 August 2014 Year to 29 February 2015
GBP'000 GBP'000 GBP'000
Profit/(loss) on
ordinary activities
before tax 1,895 (5,515) (5,226)
Loss on realisation
of investments 33 120 298
(Gain)/loss on
valuation of
investments (2,408) 4,940 4,005
Decrease in debtors 140 190 51
(Decrease)/increase
in creditors (655) 8 574
Net cash outflow
from operating
activities (995) (257) (298)
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the six months to 31
August 2015 have been prepared in accordance with the Financial
Reporting Council's (FRC) Financial Reporting Standard 104 Interim
Financial Reporting (March 2015) and the Statement of Recommended
Practice for Investment Companies issued by the Association of
Investment Companies in November 2014.
2. Publication of non-statutory accounts
The unaudited interim results for the six months ended 31 August 2015 do
not constitute statutory accounts within the meaning of s.415 of the
Companies Act 2006 and have not been delivered to the Registrar of
Companies. The comparative figures for the year ended 28 February 2015
have been extracted from the audited financial statements for that year,
which have been delivered to the Registrar of Companies. The
independent auditor's report on those financial statements, in
accordance with chapter 3 of part 16 of the Companies Act 2006, was
unqualified. This half-yearly report has not been reviewed by the
Company's auditor.
3. Earnings per share
The earnings per share at 31 August 2015 is calculated on the basis of
71,101,373 (28 February 2015: 59,233,368 and 31 August 2015: 57,199,373)
shares, being the weighted average number of shares in issue during the
period.
There are no potentially dilutive capital instruments in issue and,
therefore, no diluted return per share figures are relevant. The basic
and diluted earnings per share are therefore identical.
4. Net asset value per share
The calculation of net asset value per share is based on the net assets
at 31 August 2015 and on 73,251,687 (28 February 2015: 65,898,868 (being
the sum of 65,624,466 Ordinary shares in issue plus 274,422 shares to be
issued at that date) and 31 August 2014: 57,544,424) shares being the
number of shares in issue, excluding shares held in Treasury, at the
same date.
5. Dividends
The interim dividend declared of 2.5 pence per Ordinary share will be
paid on 14 January 2016 to those shareholders on the register on 18
December 2015.
1. Risks and uncertainties
The Company's assets consist of equity and fixed-rate interest
investments, cash and liquid resources. Its principal risks are
therefore market risk, credit risk and liquidity risk. Other risks faced
by the Company include economic, loss of approval as a VCT, investment
and strategic, regulatory, reputational, operational and financial
risks. These risks, and the way in which they are managed, are described
in more detail in the Company's Annual Report and Accounts for the year
ended 28 February 2015. The Company's principal risks and uncertainties
have not changed materially since the date of that report.
7. Related Party Transactions
Octopus acts as the investment manager of the Company. Under the
management agreement, Octopus receives a fee of 2.0 per cent per annum
of the net assets of the Company for the investment management services.
During the period, the Company incurred management fees of GBP692,000
(28 February 2015: GBP1,208,000 and 31 August 2014: GBP596,000) payable
to Octopus. At the period end there was GBPNil (28 February 2015: GBPNil
and 31 August 2014: GBPNil) outstanding to Octopus.
8. Post Balance Sheet Events
(MORE TO FOLLOW) Dow Jones Newswires
October 13, 2015 10:32 ET (14:32 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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